2018 Cheap Guaranteed Issue Life Insurance

There are two types of life insurance policies that do not require a medical exam.

They are Simplified Issue Life Insurance and Guaranteed Issue Life Insurance.

Simplified Issue Life Insurance

A Simplified Issue Life Insurance Policy will be offered if your answers to certain questions fit the underwriting guidelines of the insurance company to which you are applying for coverage.

Typical Questions Asked When Applying for Simplified Issue Life Insurance

There are typically four or more questions asked to get a quote on Simplified Issue Life Insurance.

Your answers will determine whether you are approved or not; as well as the cost of the policy (i.e. the premium).

Do you smoke?

Do you currently reside in a hospital or long-term-care institution?

Have you been declared terminally ill?

Do you have AIDS or HIV?

By answering “Yes” to smoking, you may still be able to get a Simplified Issue Life Insurance Policy but it will just be more expensive.

If you answered “Yes” to any one of questions 2-4 you should probably try finding another route because the company won’t be offering you a policy (perhaps a guaranteed issue would suit your needs – read more below).

However, if you answered “No” to questions 2-4, you can expect to be offered a policy.

This is an example of the underwriting questions asked by most insurance companies.

Some companies will ask a few more questions, and with some, the questions will be slightly different but by definition of the word “simplified” you will experience far fewer questions and invasive tests than the standard life insurance exam.

Pros/Benefits

No medical exam

Get coverage in days or weeks compared to months with other insurance policies

Full face value or “death benefit” is available immediately upon policy issuance

Less expensive than guaranteed issue life insurance

Cons/Risks

High premiums, sometimes 2-4 times higher than other life insurance policies

Guaranteed Issue Life Insurance

Like a Simplified Issue Life Insurance Policy, a Guaranteed Issue Life Insurance Policy requires no medical exam.

One major difference, is that unlike simplified issue, there are also no medical questions to answer. Like the name implies, if you pay the premium the company is “guaranteed” to issue you a policy.

The major drawback is that the full death benefit is not available until after the policy has been in force for a given amount of time, usually one to two years. In the insurance industry, this is called graded benefits.

In some cases, if the insured person dies within 2-3 years of purchasing the policy, then the beneficiaries only get refunded the premiums paid up to that point. Some companies give a percentage of the death benefit, but the beneficiaries won’t get the full amount.

Pros/Benefits

Requires no medical exam or medical questions to answer

You are guaranteed to be covered by a life insurance policy

Cons/Risks

“Graded benefits” – if the insured person dies within a specified amount of time, they will only get a portion of the death benefit or a portion of their premiums paid will be returned

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